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Contents
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November 20, 2008
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FROM THE WIRE
BOISE INC., Boise Idaho, USA, announced this week that it is restructuring its paper mill in St. Helens, Ore., permanently halting pulp production at the plant and reducing uncoated freesheet (UCFS) capacity by 200,000 tpy. This increases the total for idled UCFS capacity in the fourth quarter (both permanent and temporary due to market related downtime), as reported in last week's Over the Wire, to 561,000 tons. In the fine paper realm, coated paper capacity idled in the fourth quarter also increases to 425,000 tons with the December shutdown of Holmen's Wargön mill in Sweden, removing 140,000 metric tpy of coated magazine paper capacity. UPM's announced shutdown this quarter of its Kajaani paper mill in Finland accounts for the total SC paper capacity reduction in this week's updated graph.
Related to these capacity reductions are some 1,800 estimated permanent job losses in the fourth quarter (do not include temporary layoffs). Permanent job losses related to capacity reductions announced earlier this year in a broad spectrum of grades, from market pulp to containerboard and specialty papers, total approximately 2,300, bringing the 2008 global paper industry total to some 3,800 job losses. An estimate of new jobs created by modernization/expansion in the industry so far this year is currently not available.
At St. Helens, Boise will permanently cease paper production on PM 11 and
PM 4. PM 2 at the mill will continue to operate, primarily manufacturing
lightweight opaque and flexible packaging papers, as will the No. 3 machine,
which is owned by Cascades Tissue Group. The reductions will result in a
loss of some 300 jobs at the mill and 25 jobs in related sales, marketing,
and logistics functions elsewhere in the company. Boise expects the restructuring
to be completed no later than January 16. AHLSTROM, Helsinki, Finland, reports that it is evaluating possible market related downtime at its Kauttua mill in Finland, specifically PM 4 that makes crepe papers. The company issued a proposal this past week to start negotiations November 23 regarding a two-week layoff of personnel assigned to this machine. Currently, 21 people work on PM 4. The downtime and layoffs would "adapt the production volumes of crepe paper to match the current demand and stock levels," Ahlstrom notes. PM 4 at Kauttua is part of Ahlstrom's Technical Papers business area, which includes eight product lines, crepe papers being just one of these. In addition to Kauttua, the company produces crepe papers at two other mills in Central Europe.
ASHLAND, Covington, Ky., USA, has detailed a new management structure, reflecting the company's just-completed acquisition of Hercules. The new management team announced by Chairman and CEO James J. O'Brien , includes Lamar Chambers as senior VP and CFO, Robert Craycraft as president, Ashland Distribution, Susan Esler as VP, Human Resources and Communications, and Theodore Harris as president, Global Supply Chain, Environmental Health and Safety (EH&S), and Information Technology. David Hausrath is senior VP and general counsel, Dale MacDonald is president, Ashland Asia Pacific, Samuel Mitchell is president, Ashland Consumer Markets, John Panichella is president, Ashland Aqualon Functional Ingredients, Paul Raymond III is president, Ashland Hercules Water Technologies, Peter Rijneveldshoek is president, Ashland Performance Materials, and Walter Solomon is chief growth officer. All of the above serve on the company's operating committee. O'Brien, Chambers, and Hausrath also comprise the company's executive committee. Reporting to Harris and also serving as members of the operating committee will be Rick Music as VP, Enterprise Optimization, and Anne Schumann as VP, Acquisition Integration.
ATLANTICA BIOENERGY TASK FORCE, along with the leaders of Atlantic Canada and Maine, will meet in St. Andrews by-the-Sea, N.B., Canada, next Monday and Tuesday (November 24 -25) to explore future opportunities for the forestry sector in this region. Monday's Networking Reception will be held from 6:00 p.m. - 7:00 p.m., followed by the evening meeting from 7:00 p.m.- 10:00 p.m., which begins with a keynote address by Gary Reiner, senior VP and CIO of GE. A Summary Breakfast (with responses from the provinces and state governments) will be held on Tuesday from 7:30 a.m. to 9:00 a.m. More information is available on the Task Force website.
BOISE CASCADE HOLDINGS, Boise, Idaho, USA, reports that Duane McDougall will become the new chairman and CEO of Boise Cascade, effective December 1. McDougall replaces Tom Stephens who has served as chairman and CEO since 2004. McDougall has served on Boise Cascade's board of directors since 2004 and has extensive experience in the forest products industry, having served as president and CEO of Willamette Industries from 1998 to 2002. His Willamette career spanned 23 years, during which time he served in various operating and finance capacities. Stephens became CEO in October 2004, when Madison Dearborn Partners purchased the forest products assets of Boise Cascade Corp. During the past four years, he transformed the company through a sale of its timberlands in February 2005, growth in engineered wood products manufacturing and building materials distribution, and the sale of its paper and container assets to Boise Inc. in February of this year.
CARAUSTAR INDUSTRIES, Atlanta, Ga., USA, has consolidated two of its operations in Saginaw, Mich., into one new facility there, located at 3265 Commerce Centre. The two older facilities were turn-of-the-century, multi-storied buildings and were not designed for efficient manufacturing operations, the company notes. The new facility provides more streamlined operations while reducing work in process and materials handling costs. The consolidation, Caraustar says, continues its cost reduction strategy in geographic markets while ensuring long-term sustainability and competitiveness. The new facility allows for better and more efficient layout of machinery and processes. As a result, Caraustar explains that it will dispose of redundant assets, eliminate certain annual fixed costs, improve productivity, reduce direct labor costs, and increase its ability to focus on new product development.
IN OTHER CARAUSTAR NEWS, the company, together with Domtar (Montreal, Que., Canada) this week celebrated the tenth year of a paper recycling partnership with 14 area schools in Texas and Arkansas by presenting a check totaling $105,211 to be shared among the participating schools. The dollar amount reflects school-based collections of 824 tons of recyclable paper during the past 12 months, an increase of 100 tons over last year. A team-based approach, Domtar provides each school with a 30-yard recycling bin and includes the school in its area-wide paper donation program, which provides a steady stream of fiber. Caraustar services each bin and utilizes the fiber to manufacture recycled paper products, such as paper cores that it supplies to Domtar. Funds awarded to the participating schools benefit educational programs including science, math, technology, and environmental.
CHINA'S PAPER INDUSTRY in 2007 had 3,500 - 4,000 legal papermaking enterprises with a total production of 73.5 million metric tpy, representing an increase of 13.08% compared with 65 million metric tpy in 2006, according to a new report by Research and Markets of Dublin, Ireland. Chinese paper consumption reached 72.9 million metric tpy, a 10.45% increment over the prior year's 66 million metric tpy. Per capita consumption in 2007 was 55 kilograms, a 5-kilogram increase over 2006. More information on this report, titled "Market Report on China's Paper-making Industry, 2008-2010," is available on the publisher's website.
KRUGER's (Montreal, Que., Canada) Kruger
Products subsidiary is installing a biomass gasification system for its
tissue mill in New Westminster, B.C. To be supplied by Nexterra Energy Corp.,
Vancouver, B.C., the new system will be the first of its kind in the pulp
and paper industry. It will convert locally sourced wood residue into clean
burning syngas that will be fired directly into a boiler in place of natural
gas. The Kruger installation will produce 40,000 lb/hr of process steam
and displace some 445,000 gigajoules of natural gas annually, equivalent
to the amount of natural gas used to heat 3,500 homes in Canada for a year.
Kruger notes that displacing this amount of natural gas with syngas made from wood fuel will lower the mill's energy costs by millions of dollars a year, making the mill less reliant on fossil fuels. It will also reduce greenhouse gas emissions from the plant by more than 22,000 metric tpy, the equivalent of removing nearly 5,500 cars off Canadian roads. Kruger, Nexterra, and FPInnovations have formed a consortium to build the new system, the first commercial demonstration of Nexterra's direct-fired gasification technology.
MEADWESTVACO CORP. (MWV), Richmond, Va., USA, will discontinue operations at its MWV Packaging plant in Grover, N.C., by early 2009, in an effort to streamline costs and improve operating efficiencies. The facility produces packaging for the media and entertainment industry. Some production at Grover will transfer to other MWV packaging plants, and the company notes that its capacity to supply these products will not be affected. Closure of the Grover plant will affect some 120 hourly and salaried employees, who will be eligible for separation benefits in accordance with company policy.
MONDI, Johannesburg, South Africa, thius week signed a land restitution settlement that transfers more than 4,000 hectares of company land to the South African Kranskop communities of AmaHlongwa and AmaBomvu. The deal titles the land to the communities, which then lease it back to Mondi under a 20-year agreement that continues supply of timber to Mondi's mills. According to the agreement, the land and some immovable properties on it will be bought from Mondi by the Regional Land Claims Commission (RLCC) and/or the communities at a value of approximately R20.5 million. The land will be owned by the two communities through the Siyathokoza and Eyethu Trusts. This is South Africa's first forestry related land restitution settlement agreement involving a corporate land owner.
IN OTHER MONDI NEWS, the company has been ranked as the fourth best performer in the U.K.'s The Observer newspaper's Good Companies Guide 2008, which analyzes the performance of companies in the FTSE 350 index according to a range of social, environmental, and ethical criteria. Mondi was also the highest ranked paper and packing business in this listing.
PUMP SYSTEMS MATTER (PSM) and the U.S. Department of Energy's (DOE) Industrial Technologies Program are hosting free audio web briefings on how "Pump Systems Performance Impacts Multiple Bottom Lines." The 40-min sessions will be conducted on: Friday, December 12, at 11:00 a.m. EST and Monday, January 19, at 11:00 a.m. EST.
Presenter Mike Pemberton of ITT Industrial Process, who has helped many industrial facilities save significant energy and other operating costs, notes that improved pump systems performance can lower maintenance costs and improve system reliability for better asset management, thereby improving a company's bottom line while helping cleanup the environment. With today's volatile economic conditions, he adds, finding ways to save money and improve operations is more important than ever.
According to Pemberton, DOE studies show that nearly 25% of industrial electricity demand comes from industrial motor systems, more than 50% of pump life cycle costs result from energy and maintenance expense, less than 15% of pump life cycle costs are initial purchase costs, and energy savings of 20% or more are possible with systems optimization. Registration is required for the web briefings.
SAPPI AUSTRIA PRODUKTIONS has successfully started up newly developed web stabilizing systems on two paper machines at its Gratkorn, Austria, woodfree coated fine paper mill. The Andritz PrimeRun HV and PrimeRun D web stabilizers, as well as PrimeVAC vacuum rolls, were installed in the single-tier drying section of the paper machines, replacing existing components. The delivery schedule was tight, at six months for PM 9 and eight months for PM 11. The upgrades were completed in very narrow timeframes of four and three days, respectively. Targets for speed increases, stable tail threading, and faster widening were quickly achieved, increasing efficiency for both paper machines.
TETHYS RESEARCH, a Bangor, Maine, USA-based biotechnology company, has been awarded $749,728 from the U.S. Department of Energy (DOE) under its Small Business Innovation Research (SBIR) Phase II program to further develop its new enzyme-based pre-treatment for wood processing. Tethys is the only Maine company to receive a DOE SBIR Phase II grant during the 2008 fiscal year. Tethys discovered and is developing novel enzymes to separate wood components during lignocellulosic processing. The current state-of-the-art uses harsh bleaching chemicals and hemicellulases (known enzymes) less effectively. If successfully commercialized, the Tethys technology would enable more environmentally-friendly wood processing, with higher yield per tree, and allow current pulping waste streams to be utilized efficiently by forest biorefineries for the production of chemicals and biofuels. Tethys believes full commercialization of this technology is three years away, adding, however, that when launched, the new pre-treatment step will represent a paradigm shift for wood processing and the production of chemicals and biofuels from wood components.
WFPA (the Washington Forest Protection Association), Olympia, Wash., USA, is holding its 100th annual meeting on Thursday, November 20, at the Indian Summer Golf & Country Club in Olympia. The meeting, WFPA notes, will reflect on the challenges overcome during the last century, and highlight a prosperous path forward for the timber industry in Washington State. The meeting starts at 9:00 a.m. and includes presentations by Rob McKenna, Washington State's attorney general, Doug Sutherland, commissioner of public lands, and a special address from Governor Christine Gregoire. WFPA represents private forest landowners in Washington, its membership comprised of large and small companies, individuals, and families who grow and harvest trees on 4.2 million acres.
Paper News
BENSON GROUP, Bardon, Leicestershire, has
won both the Packaging Company of the Year award and the Cartonboard Packaging
award at the recent 2008 UK Packaging Awards. The latter packaging award
was for Sainsbury's "Taste the Difference" Fudge Range. This new packaging
combines a contemporary flat-matt look with a new type of aqueous coating
to achieve a soft-to-the-touch feel to the carton. The overall tactile effect
comes from the unique materials in the formulation, and the unusual friction
characteristics they impart, Benson Group explains. SMART PAPERS, Hamilton, Ohio, USA, has launched its new Kromekote True-Photo papers. The ultra-glossy, recycled-content digital papers combine the characteristics of traditional photo paper with the printability of triple cast-coated Kromekote (one-side). The 92-bright, archival, and acid-free papers are especially effective for short-run photos and photo applications such as greeting cards, direct mail, personalized calendars, etc. They are guaranteed on HP Indigo, Xerox iGen, Kodak NexPress, Canon, Konica-Minolta, and all production-rated laser printers. The papers are FSC certified and feature 30% post-consumer fiber. For samples and more information, call 513-869-5149.
Published Price Increases
THIELE KAOLIN CO., Sandersville, Ga., USA, has announced a price increase on kaolin products for all markets, effective January 1. The amount of the increase will vary depending on the grade of kaolin, with the price of some grades increasing by 10%. Thiele attributes the increases to "significant increases in the cost of power, chemicals, and transportation."
TAPPI NEWS
Be a part of 2009 Nanotech Event
TAPPI is seeking presenters for the 2009 International Conference on Nanotechnology for the Forest Products Industry. The conference will be presented by TAPPI and co-sponsored by Alberta Ingenuity Fund, and is scheduled for June 24-26, 2009, in Edmonton, Alberta, Canada. This annual, internationally recognized event brings together leading researchers, industry experts, government representatives and other stakeholders to discuss new ideas and breakthrough concepts on nanotechnology-based advances in the forest products and related industries.
Topics covered include nanocomposites, new generation bioproducts, nanoscale characterization, global challenges and opportunities, as well as future directions. Everyone who submits an abstract for a presentation is also encouraged to submit the abstract for a poster. A Poster Reception will be held to enhance participant networking and discussion opportunities.
Authors interested in submitting presentations may contact Colleen Walker at cwalker@tappi.org or by phone at 1 770-209-7349. Presentation titles and abstracts are due December 5, 2008. Abstracts for the 2009 International Conference on Nanotechnology for the Forest Products Industry can be sent to nano@tappi.org.
Gear up for 2009 Student Summit
The 2009 TAPPI-PIMA Student Summit will be held January 17-19, 2009 in Destin, Florida. This unique and popular event gives paper industry-oriented students from schools in the U.S. and beyond direct interaction with industry leaders. Students can learn valuable information about employment and career development within the industry, and network with students from other TAPPI student chapters.
To learn more about sponsoring or recruiting students at the 2009 TAPPI-PIMA Student Summit, contact David Bell at dbell@tappi.org. Sponsoring the Summit, or volunteering your time for the event, is an excellent way to show that you and your company value and support our industry's future leaders.
If you're a faculty advisor to students in the pulp and paper sciences, please take a moment to submit your updated TAPPI-PIMA Student Chapter Rosters to Debbie Trimmer at dtrimmer@tappi.org, to make sure they receive up-to-date information about attending this important event.
Expand your possibilities with TAPPI Courses
Have you met your goals for professional growth this year? Too often, we let "day-to-day" realities keep us from taking the extra steps toward growth and advancement. TAPPI has a solution: TAPPI Courses. If you're looking for training in a specific area of the pulp, paper and converting industry, TAPPI Courses are the answer. Bring your questions to the experts and learn solutions to specific issues, develop problem-solving skills, or just expand your knowledge.
TAPPI courses combine the high impact of expert-led material with the low cost of special member pricing. Convenient and targeted, TAPPI Courses focus on the specific issues that matter in your mill. Consider these recent comments from attendees:
- "We've save $50,000 as a direct result of the course."
- "We're saving money every day!"
- "(I was) able to come back and train our operators."
TAPPI 2009 Kraft Recovery Course
Date: January 12-15, 2009
Location: St. Petersburg, FL
Learn how to improve pulp production efficiency while minimizing operating costs and environmental problems at this four-day course. The course will cover chemistry, physics, and engineering principles relating to kraft recovery. Teams will work on real-world problems and present their results to the class - participants are encouraged to bring specific questions to the experts!
Introduction to Pulp and Paper Technology Course
Date: January 12-15, 2009
Location: St. Petersburg, FL
This four-day course is ideal for anyone new to the pulp and paper industry, suppliers and mill professionals seeking an overview of the industry, operators seeking more fundamental knowledge, and non-technical personnel in areas such as administration, finance and management. It's one of TAPPI's most popular courses.
Hands-on Workshop for Pulp and Paper Basics
Date: March 2-9, 2009
Location: NCSU campus, Raleigh, NC
This hands-on laboratory based course provides an introductory level, broad overview of Pulping, Bleaching, Chemical Recovery, Recycling, Papermaking and Converting. The 5-day course will consist of presentations in the morning and hands-on laboratory and pilot-plant exercises in the afternoon. The perfect course for sales and service personnel, machine operators, and maintenance personnel; plus, participants can earn CEUs.
NEW: Consumer Packaging Solutions for Barrier Performance
Date: April 28-29, 2009
Location: Columbus, Ohio
Offered as part of the 2009 PLACE Flexible Packaging Summit, this targeted two-day seminar will include presentations covering the technology, materials, coatings and processes that can be used to meet these product expectations. Roundtable discussion with industry experts, interactive study sessions, a keynote speaker and more create the perfect course for anyone involved in or serving the flexible packaging industry.
Trade Fair Opportunities at PaperCon '09
Each year, momentum builds around TAPPI's PaperCon multi-event; this year, YOUR company should be a part of it. More than 1,000 attendees came to PaperCon '08 in Dallas, and attendee feedback was overwhelmingly positive. Attendance included more mill attendees than any other recent TAPPI event - a trend that is expected to build for an even larger 2009 PaperCon, which will be held May 31-June 3, 2009, in St. Louis, Missouri, USA.
A complete PaperCon '09 Sponsorship and Exhibitor Prospectus is now available to help you take advantage of every opportunity offered at this important event. Why sponsor or exhibit at PaperCon '09? Here are just a few reasons:
- Meet the industry's top decision-makers
- TAPPI technical program will attract technical customers
- PIMA management program will attract executive-level customers
- Registration incentives will boost mill attendance
- Exhibits open for three days during the conference
- Exhibit layout maximizes customer interaction
- Registration list distributed to all exhibitors
- Next major international conference won't be until 2010
- No major conferences planned in Europe during 2009
DID YOU KNOW:
TAPPI has a LinkedIn Group just waiting for YOU to join! Millions of professionals around the world are listed at www.LinkedIn.com, a powerful and popular website that makes it easy to connect with others through shared professional interests. TAPPI's newly-established Linked In Group is already growing; join today and watch your connections increase.
This Linked In Group is reserved for TAPPI Members only; if you're not already a member of TAPPI, it's easy to join online, and gain the Access to Knowledge and Access to Networks that can help build your career.
Have you checked out the TAPPI Buyers Guide?
TAPPI's Buyers Guide gives individuals and companies in the pulp, paper and packaging industry a quick and easy way to maintain contact with vendors online. The guide is an extensive directory filled with businesses that sell the unique products pulp and paper professionals find essential.
New features and expanded listings have created a better Buyers Guide than ever! Accessible through a prominent link located on the TAPPI Web site, the Buyers Guide includes hundreds of listings that can easily be viewed by industry sector. Within the TAPPI Buyers Guide, online searchers will be able to easily locate products and services unique to the industry without the clutter of a general Internet search engine. Users will have the option of performing keyword-driven searches, or a category-specific search. Both methods will produce the most industry relevant results on the Web. It now also includes the PIMA Buyers' Guide, for even more contacts at your fingertips.
New issue of Eucalyptus Newsletter now available
the 17th issue of an exclusive online newsletter is now available. The Eucalyptus Newsletter, edited by expert Celso Foelkel and published in cooperation with ABTCP, includes valuable data regarding the use of eucalyptus throughout the world. The updated content includes the latest chapters, in both English and Portuguese, of an online book about eucalyptus, as well as the 2008 Eucalyptus World Map. All interested readers are invited to explore the newest information.
Get the latest research in Paper Coatings
More than 100 paper coating experts from around the world gathered in Montréal in June, 2008 to discuss the latest developments in coating at the 2008 TAPPI Advanced Coating Symposium. The complete proceedings of this event are now available through TAPPI PRESS.
The event was sponsored by Dow, Imerys RohmNova, Omya, CIPP, FPInnovations, PAPTAC and Paper Technology Specialists (PTS). The proceedings include 28 papers and 10 posters, covering topics including offset and inkjet printing fundamentals, strength and mechanical properties of coatings, modeling of coating consolidation and compression, and much more.
The reduced price for TAPPI Members is only US$149 for the complete proceedings. (Non-members pay US$198.) Order online today to bring expert coating knowledge right to your desktop.
OTW Readers, please note:
Because of the Thanksgiving holiday in the U.S., there will be NO Over The Wire delivered next week, Thursday, November 27. Over the Wire will return the following week on Thursday, December 4th. Thank you!
QUOTE OF THE WEEK
"As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them."Do you have a favorite quote that inspires your work, guides your leadership, or just makes you chuckle? If so, please share it with our readers! Email your quote suggestions, along with your name and company information, to jbottiglieri@tappi.org. We value the input of our OTW readers.
-- President John F. Kennedy, 1917 - 1963
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